Assuming that there are not any more big surprises, I would expect earnings to recover.

Investors are hoping that earnings will quickly recover to their 2000 levels, he said.

In 1995, earnings fully recovered, to almost US$49 million.

But with earnings weak, such investment - which fell off sharply late last year - will recover only slowly, technology executives say.

Both earnings and the share price have since recovered.

However, by 1992, the company returned to profitability, as earnings recovered to over US$150 million.

But while actual earnings may be recovering, earnings quality remains iffy at certain companies.

In 1985, both earnings and the stock price had recovered to new record highs.

Pzena said Lear's earnings would recover strongly and that its stock was worth closer to $60 a share.

He said earnings would recover in the third fiscal quarter to expected levels.